Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change To Clarify the Government Securities Division Rules With Respect to Repo Collateral Substitution Requests, 19561-19562 [E7-7322]

Download as PDF Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change establishes or changes a due, fee, or other charge applicable only to a member imposed by Amex, it has become effective pursuant to Section 19(b)(3)(A) of the Act 5 and Rule 19b– 4(f)(2) thereunder.6 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.7 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–Amex–2007–31 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–Amex–2007–31. This file 5 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 7 For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under Section 19(b)(3)(C) of the Act, the Commission considers the period to commence on April 10, 2007, the date on which Amex filed Amendment No. 1. See 15 U.S.C. 78s(b)(3)(C). pwalker on PROD1PC71 with NOTICES 6 17 VerDate Aug<31>2005 17:04 Apr 17, 2007 Jkt 211001 number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of Amex. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–Amex–2007–31 and should be submitted on or before May 9, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–7316 Filed 4–17–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55616; File No. SR–FICC– 2007–03] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change To Clarify the Government Securities Division Rules With Respect to Repo Collateral Substitution Requests April 11, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 23, 2007, the Fixed Income Clearing Corporation (‘‘FICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which items have been prepared primarily by FICC. The 8 17 1 15 PO 00000 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). Frm 00101 Fmt 4703 Sfmt 4703 19561 Commission is publishing this notice and order to solicit comments from interested parties and to grant accelerated approval of the proposal. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The purpose of the proposed rule change is to add a final deadline to the repo collateral substitution process of FICC’s Government Securities Division (‘‘GSD’’). II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FICC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. FICC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.2 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Currently, the GSD’s rules provide that repo collateral substitution requests for which the notification itself or the information regarding new securities collateral is received after 12:30 p.m. will be processed by the GSD on a good faith basis only.3 FICC is proposing to impose a final deadline for this process after which FICC will not process a repo collateral substitution until the following business day. This final deadline will be 1 p.m. and will be extended by one hour on days that FICC or the Securities Industry and Financial Markets Association (‘‘SIFMA’’) determine are ‘‘high volume’’ days. In situations where FICC receives a notification or information regarding the new securities collateral information after the 1 p.m. deadline, the submitting member will be required to resubmit its substitution information on the following business day for processing.4 FICC will continue to process substitution requests when notification 2 The Commission has modified the text of the summaries prepared by FICC. 3 All times referred to herein are New York times. This deadline is extended by one hour on ‘‘high volume’’ days as described in the GSD’s rules. 4 In situations where FICC receives a notification but not the new securities collateral information before the 1 p.m. deadline, the submitting member will be required to resubmit its substitution information on the following business day for processing. E:\FR\FM\18APN1.SGM 18APN1 19562 Federal Register / Vol. 72, No. 74 / Wednesday, April 18, 2007 / Notices or new securities collateral information is received between 12:30 p.m. and 1 p.m. on a good faith basis only. In situations where FICC has been notified of a substitution but the new securities collateral has not yet been reported to FICC, FICC will continue to employ the risk management measures that were instituted by FICC in prior rule filings.5 FICC believes that imposition of the final deadline will encourage members to submit their repo collateral substitution notification requests and required information on a timely basis and will alleviate the operational burdens associated with late receipt of this information. The proposed rule change is consistent with Section 17A of the Act,6 as amended, because it encourages members to submit repo collateral substitution requests and required information associated therewith on a timely basis. As such, it will support the prompt and accurate clearance and settlement of securities transactions. (B) Self-Regulatory Organization’s Statement on Burden on Competition FICC does not believe that the proposed rule change will have any impact or impose any burden on competition. (C) Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments relating to the proposed rule change have not yet been solicited or received. FICC will notify the Commission of any written comments received by FICC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action pwalker on PROD1PC71 with NOTICES Section 17A(b)(3)(F) 7 of the Act requires that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions. The Commission finds that FICC’s proposed rule change is consistent with FICC’s obligation under the Act because it encourages FICC’s members to submit repo collateral substitution requests and required information associated therewith on a timely basis.8 5 Securities Exchange Act Release No. 53534 (March 21, 2006), 71 FR 15781 (March 29, 2006) [File No. SR–FICC–2005–18], as amended by Securities Exchange Act Release No. 55217 (January 31, 2007), 72 FR 5774 (February 7, 2007) [File No. SR–FICC–2006–16]. 6 15 U.S.C. 78q–1. 7 15 U.S.C. 78q–1(b)(3)(F). 8 In approving the proposed rule change, the Commission considered the proposal’s impact on VerDate Aug<31>2005 17:04 Apr 17, 2007 Jkt 211001 The Commission finds good cause for approving the proposed rule change prior to the thirtieth day after the date of publication of notice of filing in the Federal Register because doing so will allow FICC to implement the proposed rule change in April in accordance with its system change implementation schedule. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FICC–2007–03 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–FICC–2007–03. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of such filings also will be available for inspection and copying at the principal office of FICC and on FICC’s Web site at https:// www.ficc.com/commondocs/rule.filings/ rule.filing.07–03.pdf. All comments received will be posted without change; the Commission does not edit personal efficiency, competition, and capital formation. 15 U.S.C. 78c(f). PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–FICC– 2007–03 and should be submitted on or before May 9, 2007. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,9 that the proposed rule change (File No. SR– FICC–2007–03) be and hereby is approved. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–7322 Filed 4–17–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55608; File No. SR– NASDAQ–2007–032] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Lower Fees for Distributors of Certain Market Data From the Nasdaq Market Center April 10, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on March 30, 2007, The NASDAQ Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by Nasdaq. The Exchange has filed the proposal as a ‘‘non-controversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Nasdaq is proposing to modify Nasdaq Rule 7019(b) to lower the 9 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 10 17 E:\FR\FM\18APN1.SGM 18APN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 74 (Wednesday, April 18, 2007)]
[Notices]
[Pages 19561-19562]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7322]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55616; File No. SR-FICC-2007-03]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Order Granting Accelerated Approval of a Proposed 
Rule Change To Clarify the Government Securities Division Rules With 
Respect to Repo Collateral Substitution Requests

April 11, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 23, 2007, the Fixed 
Income Clearing Corporation (``FICC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change described 
in Items I, II, and III below, which items have been prepared primarily 
by FICC. The Commission is publishing this notice and order to solicit 
comments from interested parties and to grant accelerated approval of 
the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to add a final deadline 
to the repo collateral substitution process of FICC's Government 
Securities Division (``GSD'').

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FICC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. FICC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of these 
statements.\2\
---------------------------------------------------------------------------

    \2\ The Commission has modified the text of the summaries 
prepared by FICC.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Currently, the GSD's rules provide that repo collateral 
substitution requests for which the notification itself or the 
information regarding new securities collateral is received after 12:30 
p.m. will be processed by the GSD on a good faith basis only.\3\ FICC 
is proposing to impose a final deadline for this process after which 
FICC will not process a repo collateral substitution until the 
following business day. This final deadline will be 1 p.m. and will be 
extended by one hour on days that FICC or the Securities Industry and 
Financial Markets Association (``SIFMA'') determine are ``high volume'' 
days. In situations where FICC receives a notification or information 
regarding the new securities collateral information after the 1 p.m. 
deadline, the submitting member will be required to resubmit its 
substitution information on the following business day for 
processing.\4\ FICC will continue to process substitution requests when 
notification

[[Page 19562]]

or new securities collateral information is received between 12:30 p.m. 
and 1 p.m. on a good faith basis only. In situations where FICC has 
been notified of a substitution but the new securities collateral has 
not yet been reported to FICC, FICC will continue to employ the risk 
management measures that were instituted by FICC in prior rule 
filings.\5\
---------------------------------------------------------------------------

    \3\ All times referred to herein are New York times. This 
deadline is extended by one hour on ``high volume'' days as 
described in the GSD's rules.
    \4\ In situations where FICC receives a notification but not the 
new securities collateral information before the 1 p.m. deadline, 
the submitting member will be required to resubmit its substitution 
information on the following business day for processing.
    \5\ Securities Exchange Act Release No. 53534 (March 21, 2006), 
71 FR 15781 (March 29, 2006) [File No. SR-FICC-2005-18], as amended 
by Securities Exchange Act Release No. 55217 (January 31, 2007), 72 
FR 5774 (February 7, 2007) [File No. SR-FICC-2006-16].
---------------------------------------------------------------------------

    FICC believes that imposition of the final deadline will encourage 
members to submit their repo collateral substitution notification 
requests and required information on a timely basis and will alleviate 
the operational burdens associated with late receipt of this 
information.
    The proposed rule change is consistent with Section 17A of the 
Act,\6\ as amended, because it encourages members to submit repo 
collateral substitution requests and required information associated 
therewith on a timely basis. As such, it will support the prompt and 
accurate clearance and settlement of securities transactions.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    FICC does not believe that the proposed rule change will have any 
impact or impose any burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    Written comments relating to the proposed rule change have not yet 
been solicited or received. FICC will notify the Commission of any 
written comments received by FICC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Section 17A(b)(3)(F) \7\ of the Act requires that the rules of a 
clearing agency be designed to promote the prompt and accurate 
clearance and settlement of securities transactions. The Commission 
finds that FICC's proposed rule change is consistent with FICC's 
obligation under the Act because it encourages FICC's members to submit 
repo collateral substitution requests and required information 
associated therewith on a timely basis.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    The Commission finds good cause for approving the proposed rule 
change prior to the thirtieth day after the date of publication of 
notice of filing in the Federal Register because doing so will allow 
FICC to implement the proposed rule change in April in accordance with 
its system change implementation schedule.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-FICC-2007-03 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-FICC-2007-03. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549. Copies of such filings also will be 
available for inspection and copying at the principal office of FICC 
and on FICC's Web site at https://www.ficc.com/commondocs/rule.filings/
rule.filing.07-03.pdf. All comments received will be posted without 
change; the Commission does not edit personal identifying information 
from submissions. You should submit only information that you wish to 
make available publicly. All submissions should refer to File Number 
SR-FICC-2007-03 and should be submitted on or before May 9, 2007.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\9\ that the proposed rule change (File No. SR-FICC-2007-03) be and 
hereby is approved.
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    \9\ 15 U.S.C. 78s(b)(2).
    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10 \
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-7322 Filed 4-17-07; 8:45 am]
BILLING CODE 8010-01-P

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